By Tonn, Rebecca
Nationwide, many businesses and consumers are in a wait-and-see mode, or ducking for financial cover.
But some local businesses have ramped up or started first-time marketing and advertising campaigns -- knowing that one of the best ways to acquire and keep clients is to remain in their brains, so to speak.
But marketing is not a one-time venture. Buying one ad or haphazardly mailing a few postcards is not marketing.
Some companies have severely trimmed marketing, while others have temporarily eliminated it. But smart money is on those who have either held steady or are pursuing new customers.
"It's a mistake to stop advertising," said Greg Snyder, president and chief executive officer of Incognito Marketing. "We all have short memories -- if you don't remind your customers that you exist, they will be wooed away by whoever comes along next."
During good economic times, most business owners "get sloppy" and take whatever business comes through the door. But companies should actively identify who their customers are and pursue them, Snyder said. "Tell them why you are the best choice."
During September, one local company decided to do just that. Qualtek Manufacturing had been subsisting for decades on word-of- mouth to generate new customers, said Steve Bailey, heat treat manager.
"But when people kept talking about the economy going south, we wanted to be proactive," he said.
So the company hired a marketing firm, focusing on the heat treat portion of Qualtek's business, because it had, by far, the most potential for increasing customers. Only a handful of companies along the Front Range need Qualtek's other services -- stamping, metal finishing and wire electrical discharged machining.
The first of seven mailings of full-color, oversized postcards were sent during October. The postcards have art, of course, and catchy slogans such as "Fired up and ready: We treat you right," and "Cold hard steel: Quench the heat."
After a batch of postcards goes out, Bailey follows up with customer calls and visits.
"We want to keep our name out there," he said.
Another local company, Magnum Tool, -- which manufactures machined components for medical devices -- has maintained marketing and advertising during the downturn.
The company has gone through a progression of marketing and trade show exposure, said Mike Long, vice president of sales and marketing.
Magnum Tool first exhibited at the 2004 Medical Device & Manufacturing show and exposition in Anaheim, Calif., with a borrowed 10-foot booth and a Power Point presentation.
But times have changed -- exposure at the expo was enough to warrant buying a 20-foot, custom-designed booth and a professionally created video.
Magnum Tool's competitors are large international companies.
"We had to go out there as the little guy and put our footprint out there," Long said. "Marketing put us on the market -- with polish -- with some of the bigger players."
The company has color brochures with high-quality graphics and also runs quarter- and half-page ads in trade journals such as BoneZone.
As for watching expenses during the recession, well, budgets can be chiseled without sacrificing marketing presence.
For instance, Long has "zeroed in on targeted industries better," and, although they don't dare eliminate exhibiting at trade shows, they have cut back on expenses and high-end meals when traveling.
"When our competition is backing off and we're not -- that gives us a leg up," Long said. "Industry buyers will think you're not a real player or something is wrong is you back off on advertising. I don't want to go there."
Another local organization committed to marketing during the recession is Ent Federal Credit Union.
"Marketing plays an important role in times like these," said James Moore, senior vice president. "We are communicating to our members that: we're here; we're strong; we're providing services to meet your challenges and we'll continue to be here for years to come."
Victoria Selfridge, Ent's director of marketing and eCommerce, said there are more conversations taking place around the dinner table and among friends about finances.
"And we want to come up in those conversations," she said.
Ent uses mass channels, such as billboards, nine local radio stations and Facebook, with pay-per-click ads, and targeted advertising, such as direct mail and print ads in newspapers and magazines such as MD News and Colorado Biz.
Despite the recession, Ent has added something new this year: supporting National Public Radio, a move which has garnered positive feedback from its members.
However, the credit union is careful to "look at where we get the biggest bang for the buck," Moore said.
"We're taking advantage of the decrease in advertising 'noise' to showcase our products and services to existing and potential members," Selfridge said.
Although Ent has slightly reduced its marketing footprint this year, Moore said, "So many companies have pulled back that our presence stands out more."
Which might well be one of the best incentives to market a company during a recession.
"The best time to market is when everyone else is pulling back," Long said. "It was well worth our investment to market."
Go ahead and trim the excess fat from the company budget, but don't forego or neglect the strategic advantage that keeps companies in business for the long-term -- marketing.
When budgets are being squeezed, even loyal customers still need to be enticed.
"Marketing is a long-term commitment," Snyder said. "Don't forget who brought you to the dance."
Credit: Rebecca Tonn
(Copyright 2009 Dolan Media Newswires)
(c) 2009 Colorado Springs Business Journal, The. Provided by ProQuest LLC. All rights Reserved.
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